Key takeaways
National home prices lifted 0.04% in September and are now 5.67% higher than a year ago.
Prices in the combined capital cities have increased 5.88% over the past year, but were flat in September. Growth remained varied across the capitals, reflecting a multi-speed market.
Adelaide (+0.53%), Perth (+0.24%), and Brisbane (+0.20%) recorded the strongest growth in September, while Hobart and Melbourne were the only capitals to see prices fall over the month, with prices down 0.31% and 0.30% respectively.
Of the capital cities, Perth, Adelaide and Brisbane have recorded the fastest pace of growth over the past two years. This trend persisted in September with Perth prices up 22.34% over the past 12 months, followed by Adelaide (+15.05%) and Brisbane (+13.31%).
Capital city prices have outpaced regional areas over the past year, but in September growth in regional areas (+0.11%) outpaced the combined capitals (+0.01%).
Performance was also diverse in regional areas. Regional WA (+15.47%) and regional QLD (+10.98%) have led growth over the past year, while regional Victoria has recorded the largest falls year-on-year (-1.32%).
National home prices increased by 0.04% in September, according to the PropTrack Home Price Index with price growth slowing as more homes are listed for sale, providing greater choice for buyers.
Ms Eleanor Creagh, PropTrack's Senior Economist said that the upswing in Australia’s home prices has persisted into the spring selling season, with national prices cycling through their 21st consecutive month of price growth, though the pace of growth has slowed with buyers enjoying more choice.
She further commented:
"Housing demand remains resilient, defying affordability constraints with prices lifting across much of the country in September, albeit at a slower pace in most markets.
The number of homes listed for sale has lifted, providing more choice and slowing price growth.
However, the pace of growth remains varied with differing supply and demand conditions driving diverse performance across the country."
Capital cities retain their lead over the year
Data from PropTrack shows that capital city prices have outpaced regional areas over the past year but in September growth in regional areas (+0.11%) outpaced the combined capitals (+0.01%).
Meanwhile, prices in regional areas rose 0.11% over the month to be 5.12% above September 2023 levels.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State October 22nd 2024
- Also read:Adelaide housing market update | October 2024
- Also read:Brisbane housing market update | October 2024
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- Also read:Perth housing market update | October 2024
Ms Creagh noted that performance has also varied in regional areas. Regional WA (+15.47%) and regional QLD (+10.98%) have led growth over the past year, while regional Victoria has recorded the largest falls year-on-year (-1.32%).
She further explained:
"Differing supply and demand conditions are contributing, with buyers in regional Victoria enjoying a lot more choice with total stock on market about 40% above the prior five-year average, giving buyers the upper hand."
Outlook
Ms Creagh highlights that despite the high interest rate environment, home prices in 2023 remained resilient, with this positive momentum continuing into 2024.
National prices have now entered their 21st month of growth, driven by strong housing demand, which persists despite affordability challenges.
The number of homes listed for sale has increased, offering buyers more choice and tempering the pace of price growth, although market performance varies across regions due to differing supply and demand dynamics.
Factors like July’s tax cuts, which boosted borrowing capacities, along with strong population growth, tight rental markets, and home equity gains, continue to support price increases.
However, high interest rates, cost-of-living pressures, and subdued consumer sentiment are tempering growth.
As we head into the busier spring selling season, prices are expected to continue rising, though at a slower rate, as buyers weigh affordability constraints and uncertainty around future interest rate cuts.
